Emergency-related state tax relief available for taxpayers located in two counties of Michigan impacted by severe weather.
Withholding Tax Filers
Withholding Tax Filers
Taxpayer Eligibility
The Research and Development (R&D) Tax Credit is available to Withholding Tax filers that meet all of the following conditions:
- Are flow-through entities,
- Are employers subject to Michigan Withholding Tax,
- Incurred Michigan Qualified R&D Expenses (MQREs) during the expense year that exceed their base amount, and
- Are not subject to Corporate Income Tax (CIT) or Michigan Business Tax (MBT).
- CIT filers must apply for this credit through CIT; they are not eligible for the R&D Tax Credit under Withholding Tax.
The expense year is the calendar year when the MQREs were incurred.
Deadlines and Key Dates
- MQREs Incurred: January – December of the expense year
- R&D Credit Application Claim Deadline
- For expense year 2025: April 1, 2026
- For later years: March 15 following the expense year
- Proration Notice Expected: April following the expense year
- Estimated Offset Period (optional): May – December following the expense year (after the Proration Notice is published)
- Tax Return and Final Claim Due: February 28, two calendar years after the expense year, when the eligible business files its annual return for the tax year following the expense year.